TradeMax Portfolio Beta module shows the risk-adjusted return of the portfolio and that of the index over one time period in the past.This module also include options trading strategy evaluation function which can give you a graphic reporting on specific options spread trade strategies, specifically butterflies, calendars, iron condors, and their adjustments.

A Portfolio Beta indicates securities that tend to be more volatile in their price movements than the market taken as a whole. Portfolio beta is calculated by summing the products of each security’s beta times the proportional weight of the security in the portfolio.

Calculating your portfolio’s beta will give you a measure of its overall market risk. To do so, find the betas for all your stocks. Each beta is then multiplied by the percentage of your total portfolio that stock represents (i.e., a stock with a beta of 1.2 that comprises 10% of your portfolio would have a weighted beta of 1.2 times 10% or .12). Add all the weighted betas together to arrive at your portfolio’s overall beta.

Beta is a measure of a portfolio’s volatility. A beta of 1 means that the portfolio is neither more nor less volatile or risky than the wider market. A beta of more than 1 indicates greater volatility while a beta of less than 1 indicates less. Beta is an important component of the Capital Asset Pricing Model, which attempts to use volatility and risk to estimate expected returns.

The beta coefficient is a key parameter in the capital asset pricing model (CAPM). It measures the part of the asset’s statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Beta can be estimated for individual companies using regression analysis against a stock market index.

The Beta List is designed to help you quickly find Beta Report. There are two examples of the type:

APPL(OPT Analysis)

Current Holding Portfolio

If you select the Beta in the Beta Panel or Quick Access panel,you will get the Beta List (similar to the picture above). Beta Report are organized in logical groups that are collected together under tabs.

3. Beta Grid

Beta Grid is the main section where users are able to calculate their Beta after they import their trades into TradeMax.

BUY CALL WHEN TO USE. You are very bullish on the stock. The more bullish you are, the higher the strike should be. No other position gives you so much leveraged advantage with limited downside risk.PROFIT increases as stock rises. At expiration, break-even point will be option strike A plus premium paid. For each point above break-even, profit increases by an additional point.LOSS is limited to the premium paid. Maximum loss realized if the stock ends below A. For each point above A, loss decreases by additional point.RISK: Limited. REWARD: Unlimited. MARGIN: Not required.TIME DECAY. This position is a wasting asset. As time passes, value of position erodes toward expiration value. If volatility increases, erosion slows; if volatility decreases, erosion speeds up.

BUY PUT WHEN TO USE. You are very bearish on stock. The more bearish you are, the more out-of-the-money (lower strike) should be the option you buy. No other position gives you as much leveraged advantage in a falling stock (with limited upside risk).PROFIT increases as stock falls. At expiration, break-even point will be option exercise price A less premium paid. For each point below break-even, profit increases by additional point.LOSS limited to amount paid for option. Maximum loss is realized if the stock ends above option exercise A. For each point below A, loss decreases by additional point.RISK: Limited. REWARD: Unlimited.TIME DECAY This position is a wasting asset. As time passes, value of position erodes toward expiration value. If volatility increases, erosion slows; if volatility decreases, erosion speeds up.

SELL NAKED PUT WHEN TO USE. You are sure that the price will not fall. Sell lower strike options if you are only somewhat convinced; sell higher strike options if you are very confident the stock will stagnate or rise. If you doubt stock will stagnate, sell at-the-money options for maximum profit.PROFIT: limited to the premium received from sale. At expiration, break-even point is strike price A less premium received. Maximum profit realized if stock settles at or above A.LOSS: increases as stock falls. At expiration, losses increase by one point for each point stock is below break-even. Because the risk is open-ended, this position must be watched closely.RISK: Unlimited. REWARD: Limited. MARGIN: Always required.TIME DECAY: this position is a growing asset. As time passes, value of position increases as option loses its time value. Maximum rate of increasing profits occurs if the option is at-the-money.

BULL SPREAD
Call option is bought with a strike price of A and another call option sold with a strike of B, producing a net debit.
OR
Put option is bought with a strike of A and another put sold with a strike of B, producing a net credit.WHEN TO USE: you think the stock will go up somewhat or at least is a bit more likely to rise than to fall. Good position if you want to be in the stock but are unsure of bullish expectations. This is the most popular bullish strategy.PROFIT: limited, reaching maximum if stock ends at or above the higher strike B at expiration. If call spread used, difference between strikes minus initial debit. If put spread used, net initial credit.LOSS: maximum loss if stock at expiration is at or below A. If call spread used, maximum loss is net initial debit. If put spread, difference between strikes minus initial credit.RISK: limited. REWARD: limited.TIME DECAY: if stock is midway between A and B, no time effect. At B, profits increase at fastest rate with time. At A, losses increase at maximum rate with time.

BEAR SPREAD
Put option is bought with a strike price of A and another put option sold with a strike of B, producing a net debit.
OR
Call option is bought with a strike of A and another call sold with a strike of B, producing a net credit.WHEN TO USE: you think the stock will go down somewhat or at least is a bit more likely to fall than to rise. Good position if you want to be in the stock but are unsure of bearish expectations. This is the most popular bearish strategy.PROFIT: limited, reaching maximum if stock ends at or below the lower strike B at expiration. If put spread used, difference between strikes minus initial debit. If call spread used, net initial credit.LOSS: maximum, if stock at expiration is at or above A. If put spread used, maximum loss is net initial debit. If call spread, difference between strikes minus initial credit.RISK: limited. REWARD: limited.TIME DECAY: if the stock is midway between A and B, no time effect. At A,profits increase at fastest rate with time. At B, losses increase at maximum rate with time.

SELL COVERED CALL
Call option against the stock holding is sold.WHEN TO USE: you are sure that the price of the stock you hold will not fall. Sell lower strike options if you are only somewhat convinced; sell higher strike options if you are confident stock will rise. If you think stock will stagnate, sell at-the-money options for maximum profit.PROFIT: limited to the strike minus the market price plus the premium received.LOSS: similar to that incurred with ordinary stock ownership, only partially off-set by the option premium received. Main loss could be the opportunity loss if the market rises strongly.RISK: unlimited. REWARD: limited.TIME DECAY: This position is a growing asset. As time passes, value of position increases as the option loses its time value. Maximum rate of increasing profits occurs if option is at-the-money.

BUY STRADDLE
Call option and put option are bought with the same strike A – usually at-the-money.WHEN TO USE: you firmly believe that the stock moves far enough in either direction in the short-term. Buy higher/lower strike options if the position can encounter different probabilities of bullish or bearish movements of the stock; buy at-the-money options if those probabilities are almost equal.PROFIT: increases as the stock rises or falls. At expiration, break-even points will be option exercise price A +/- prices paid for options. For each point above upside break-even or below downside break-even, profit increases by an additional point.LOSS: limited to the amount paid for options. Maximum loss realized if stock ends at option exercise A. For each point above or below A, loss decreases by additional point.RISK: limited. REWARD: unlimited. MARGIN: not required.TIME DECAY: This position is a wasting asset. As time passes, value of position erodes toward expiration value. If volatility increases, erosion slows; if volatility decreases, erosion speeds up.

BUY STRANGLE
Put option is bought with a strike A and a call option is bought with a strike B.WHEN TO USE: you strongly believe the stock will move far enough from the predefined range. This strategy is similar to the buy straddle but the premium paid here is less. Buy higher/lower strike options if the position can encounter different probabilities of bullish or bearish movements of the stock; buy at-the-money options if those probabilities are almost equal.PROFIT: unlimited andincreases as stock rises above B or falls below A. At expiration, break-even points will be option exercise price A – prices paid for options and option exercise price B + prices paid for options. For each point above upside break-even or below downside break-even, profit increases by an additional point.LOSS: limited to amount paid for options. Maximum loss realized if stock ends between A and B. For each point above B or below A, loss decreases by additional point.RISK: limited. REWARD: unlimited. MARGIN: not required.TIME DECAY: This position is a wasting asset. As time passes, value of position erodes toward expiration value. If volatility increases, erosion slows; if volatility decreases, erosion speeds up.

BUY BUTTERFLY
Call option with low strike bought and two call options with medium strike sold and call option with high strike bought. The same position can be created with puts.WHEN TO USE: you believe that the stock price will fluctuate in a narrow range.PROFIT: limited, reaching maximum at a high strike. If call version used, downside break-even=low strike – net cost of spread, upside break-even is at high strike + net cost of spread.LOSS: maximum loss realized if stock ends below low strike or above high strike and limited to net credit paid. For each point above low strike or below high strike, loss decreases by additional point.RISK: limited. REWARD: limited.TIME DECAY: This position is a combined asset. As time passes, value of position increases/erodes toward expiration value. If volatility increases, increase/erosion slows; if volatility decreases, increase/erosion speeds up.

SELL BUTTERFLY
Call option with low strike sold and two call options with medium strike bought and call option with high strike sold. The same position can be created with puts.WHEN TO USE: you believe that the stock price will move substantially.PROFIT: limited to initial credit received.LOSS: limited to the difference between the lower and middle strikes minus the initial spread credit.RISK: limited. REWARD: limited.TIME DECAY: This position is a combined asset. As time passes, value of position increases/erodes toward expiration value. If volatility increases, increase/erosion slows; if volatility decreases, increase/erosion speeds up.

BUY CONDOR
The condor takes the body of the butterfly梩wo options at the middle strike梐nd splits it between two middle strikes rather than just one. In this sense, the condor is basically a butterfly stretched over four strike prices instead of three. Call option with low strike bought and two call options with two medium strikes sold and call option with high strike bought. The same position can be created with puts.WHEN TO USE: you believe that the stock price will fluctuate in a trading range.PROFIT: limited, reaching maximum between medium strikes.LOSS: maximum loss realized if stock ends below low strike or above high strike and limited to net credit paid. For each point above low strike or below high strike, loss decreases by additional point.RISK: limited. REWARD: limited.TIME DECAY: This position is a combined asset. As time passes, value of position increases/erodes toward expiration value. If volatility increases, increase/erosion slows; if volatility decreases, increase/erosion speeds up.

SELL CONDOR
The condor takes the body of the butterfly梩wo options at the middle strike梐nd splits it between two middle strikes rather than just one. In this sense, the condor is basically a butterfly stretched over four strike prices instead of three. Call option with low strike sold and two call options with medium strikes bought and call option with high strike sold. The same position can be created with puts.WHEN TO USE: you believe that the stock price will move substantially.PROFIT: limited to initial credit received.LOSS: limited to the difference between the lower and middle strikes minus the initial spread credit.RISK: limited. REWARD: limited.TIME DECAY: This position is a combined asset. As time passes, value of position increases/erodes toward expiration value. If volatility increases, increase/erosion slows; if volatility decreases, increase/erosion speeds up.

Beta Panel

Beta Panel is designed to help you quickly manage symbols.

Basic Function

Actions Group

Append

Append a symbol

Edit

Edit your symbol records

Delete

Delete selected symbol records

Save

Save the symbol record (Keyboard Shortcuts: CTRL + S)

Undo

Undo the last action (Keyboard Shortcuts: CTRL +Z/ALT + Backspace)

Redo

Redo the previously undo action (Keyboard Shortcuts: CTRL +Y)

View Group

Group By Box

Press the Group By Box button to activate the Group By panel which is at the top of the data grid.It allows grouping data by single or multiple columns. You can either set grid column(s) that will be used for grouping, or enable Group By Box where grouped columns may be dropped at runtime

Field Chooser

Press the Field Chooser button to activate the Field Chooser box floating above the data grid.The built-in Filed Chooser provides a simple and efficient way to organize the grid layout: you can drag and drop the column header to the chooser from the grid header. You can also drag any required field from the chooser and drop it either on the grid header, or on the group box.